- U.S Markets closed lower yesterday.
- Right now Dow futures and Asian markets are mixed.
- SGX Nifty is at 17300.
- Ahead of FOMC meeting Market is under pressure.
- Markets can handle good news , bad news but cannot handle uncertainty.
- U.S Markets have fallen 4% in anticipation of Fed meeting so I feel negative news has been factored in.
- Today we might have some upside in U.S Markets.
- Fed has always been pro Market after the Lehmann brothers collapse.
- It's less likely they would come out with something very negative and disrupt the Markets.
- FII's have sold for 750 crores yesterday and hence Market was stable.
- FII's will be going inactive in last part of December.
- So we can expect volumes to reduce going ahead.
- Today we can expect an inside day within yesterday range on Nifty.
- Yesterday Midcaps and small caps closed in green.
- Only due to FII selling large caps were under pressure.
- 17400 CE added huge open interest yesterday.
- So Nifty might face stiff resistance in the range of 17400-17450 today.
- Yesterday's low of 17230-17250 should act as a good support today..
- Nifty might Trade between 17200 to 17450 today.
- stockmarketadvisory.in
U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is
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